Sprint and T-Mobile abandon merger talks

Sprint and T-Mobile's have abandoned discussions about a potential merger.

The companies issued a joint statement Saturday, after a week of speculation, saying they "have ceased talks."

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own," said Marcelo Claure, Sprint's CEO.

T-Mobile CEO John Legere also said there were benefits to consolidating, but added that, "we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders."

Shares of Sprint(S) and T-Mobile(TMUS) tumbled Monday after rumors emerged that merger talks between the two companies were fizzling.

On Monday it looked as if SoftBank(SFTBF), the Japanese conglomerate with a majority stake in Sprint, would end negotiations because of concerns about the ownership structure of the combined business, according to reports from Nikkei and The Wall Street Journal. Claure, the Sprint CEO, is also a member of SoftBank's board .